24 Aug THE ROLE OF ERP IN SUPPLY CHAIN MANAGEMENT
In a world where agility is a prerequisite for success, decision-makers need to understand that companies no longer compete with companies. In the new business ecosystem, your supply chain competes with other supply chains. Keeping that in mind, have you ever wondered what your competitor’s ERP system has that yours doesn’t?
Your ERP should take care of the physical aspects of supply such as storage and transportation and the processes of effectively managing demand and supply to meet customer demands. A great ERP solution coordinates and integrates material flows, information flows as well as financial flows. With that being said, what is the role of ERP in Supply Chain Management?
Demand and Planning through ERP
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Your ERP system should streamline supply chain management by making job scheduling a breeze. This will grant division supervisors real-time insight into what resources are being used. Your company will then be able to plan delivery dates proactively. In an ideal world, production should only start when inventory and raw materials are in place. A great ERP solution makes it possible to balance demand, replenishment, and maintaining lean inventory.
According to the World Bank and IMF, South Africa is considered to be one of the best amongst BRICS nations when it comes to managing supply chains. However, we are still far behind the developed nations. However, using the same industry-leading ERP solutions as the developed nations put your company at a great vantage point. ERP streamlines the process of drafting plans and management workflows for local and global supply chains. It gives you that added competitive advantage in handling the procurement of your final product. It enahances colaboration wtih your supply chain partners ensuring that you maintain an effectice supply chain.
Procurement using ERP
ERP systems empower supply chain managers more efficiency in managing procurement and supply of goods or services. You can handle manufacturing and warehouse resources as well as transportation and execution processes all in one interface. There’s no need to manually keep track of communications with vendors, this can all be automated through your Enterprise Resource Planning solution.
It has been found that the biggest gap in skills within the supply chain management industry was in analytical skills. This is a skill which is highly vital to the success of supply chain managers. It is one of the skills that create a barrier for South African supply chain managers in achieving higher maturity in the industry. Your ERP can assist in centralizing your data to get a full view of your entire business all from one dashboard allowing for the optimization of your supply chain management (SCM).
Managing Shipments with ERP
Once your product is ready for shipment, your ERP should create shipping documents, packaging labels, and invoices that are used to document the deliveries to your customer. Keep all your shipments and delivery details all in one central repository allowing for easy track and traceability and shipping management. Use the power of information systems to unlock the full potential of how you move your final product or service throughout your network. ERPs ensure that you have an efficient and effective supply chain in the journey from raw materials to a finished product.
Perhaps your ERP has some and not all these functions. You never know if your competitor’s ERP does. Stay a step ahead of the competition by employing the best ERP solution that is tailored to your specific needs. Maintain efficiency across all your different departments and key stakeholders Today!